India's composite PMI eases to 59.9 in October

Falling from 61.0 in September to 59.9 in October, the HSBC Flash India Composite Output Index registered its lowest reading since May 2025. Despite signalling a softer rate of expansion, the current figure was still consistent with a historically sharp rate of growth.

Conversely, the HSBC Flash India Manufacturing PMI rose from 57.7 in September to a two-month high of 58.4 in October. The latest reading was indicative of a substantial improvement in manufacturing conditions.

Private sector activity in India continued to increase sharply in October, but growth lost momentum amid a slowdown in the service economy.

The latest HSBC Flash PMI data highlighted the weakest expansions in aggregate new orders and output since May 2025, with international sales also rising to a lesser extent.

Meanwhile, the rate of job creation was the joint-softest in a year-and-a-half. Price trends were mixed, with input costs increasing at the weakest pace since June and charge inflation quickening since September.

Businesses remained optimistic regarding growth prospects, though sentiment faded at the start of the third fiscal quarter.

New orders placed with private sector companies in India expanded sharply in October. International demand for Indian goods and services remained favourable in October, though companies noted a softer upturn than in September.

October data showed a moderate expansion in private sector employment across India, with the rate of growth matching that seen in September and therefore being the joint-slowest since April 2024.

Indian companies remained strongly confident regarding the year-ahead outlook for output, yet the respective index fell since September.

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